Symantec 2010 Annual Report Download - page 176

The aggregate changes in the balance of gross unrecognized tax benefits since adoption were as follows (in
millions):
Beginning balance as of March 31, 2007 (date of adoption) .......................... $456
Settlements and effective settlements with tax authorities and related remeasurements. ...... (7)
Lapse of statute of limitations ................................................ (6)
Increases in balances related to tax positions taken during prior years................... 40
Decreases in balances related to tax positions taken during prior years .................. (6)
Increases in balances related to tax positions taken during current year.................. 111
Balance as of March 28, 2008................................................ $588
Settlements and effective settlements with tax authorities and related remeasurements. ...... (2)
Lapse of statute of limitations ................................................ (9)
Increases in balances related to tax positions taken during prior years................... 31
Decreases in balances related to tax positions taken during prior years .................. (19)
Increases in balances related to tax positions taken during current year.................. 44
Balance as of April 3, 2009 ................................................. $633
Settlements and effective settlements with tax authorities and related remeasurements. ...... (7)
Lapse of statute of limitations ................................................ (14)
Increases in balances related to tax positions taken during prior years................... 12
Decreases in balances related to tax positions taken during prior years .................. (92)
Increases in balances related to tax positions taken during current year.................. 11
Balance as of April 2, 2010 ................................................. $543
Of the $90 million of changes in gross unrecognized tax benefits during the fiscal year as disclosed above,
approximately $1 million was provided through purchase accounting in connection with acquisitions during fiscal
2010. This gross liability is reduced by offsetting tax benefits associated with the correlative effects of potential
transfer pricing adjustments, interest deductions, and state income taxes, as well as payments made to date.
Of the total unrecognized tax benefits at April 2, 2010, $535 million, if recognized, would favorably affect the
Company’s effective tax rate, while $8 million would affect the cumulative translation adjustments. However, one
or more of these unrecognized tax benefits could be subject to a valuation allowance if and when recognized in a
future period, which could impact the timing of any related effective tax rate benefit.
Our policy to include interest and penalties related to gross unrecognized tax benefits within our provision for
income taxes did not change upon the adoption of the new authoritative guidance on income taxes. At April 2, 2010,
before any tax benefits, we had $102 million of accrued interest and accrued penalties on unrecognized tax benefits.
Interest included in our provision for income taxes was a benefit of approximately $34 million for the year ended
April 2, 2010. If the accrued interest and penalties do not ultimately become payable, amounts accrued will be
reduced in the period that such determination is made, and reflected as a reduction of the overall income tax
provision.
We file income tax returns in the U.S. on a federal basis and in many U.S. state and foreign jurisdictions. Our
two most significant tax jurisdictions are the U.S. and Ireland. Our tax filings remain subject to examination by
applicable tax authorities for a certain length of time following the tax year to which those filings relate. Our 2000
through 2009 tax years remain subject to examination by the Internal Revenue Service (“IRS”) for U.S. federal tax
purposes, and our 2006 through 2009 fiscal years remain subject to examination by the appropriate governmental
agencies for Irish tax purposes. Other significant jurisdictions include California, Japan, the UK and India. As of
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)